Unfortunately, debt is a common problem here in NYC and nationwide. If you cannot keep up with your debts, you could struggle and struggle, denying your family what they need and subjecting yourself to the harassment of your creditors, or you could get the relief you so desperately need through bankruptcy. If there are things you must pay, such as your car loan or your rent, getting rid of your credit card debts and provide you with the funds you need. The decision is yours and the best way to determine exactly what to do is to call us at (718) 544-0500 for a free consultation.
Bankruptcy is Usually a Better Choice than Debt Consolidation or Debt Settlement
Debt Consolidation companies are collecting for the creditors. They may be able to lower the interest rate or the payment, but you will end up paying your debts in full. If you are in enough distress to consider this option, you probably cannot afford the monthly payment. With bankruptcy you either have no payment if you file under Chapter 7, or a smaller payment if you file under Chapter 13.
Debt Settlement plan work by taking your money and putting it aside until your creditors agree to take less than the full amount. There are creditors that are known to refuse to take less and they will sue you even if you are in such a plan, and you have to pay income taxes on the amount that is forgiven. In bankruptcy, the creditors have to go along and cannot sue you.
Ask Yourself These Questions If Your Are Considering Bankruptcy…
- Is my total amount of debt more than ¼ of my gross yearly earnings?
- Can I only afford to make minimum payments on my credit cards? Or, am I borrowing from one credit card to pay another?
- Have I missed any of my debt payments, including a mortgage, credit card or car payment?
- Am I receiving calls or letters from creditors?
- Am I being sued by a creditor for not paying some debt?
- Have my wages been garnished or have my bank accounts been seized?
If you answered “Yes” to one or more of the above questions, bankruptcy may be your best option. Call (718) 544-0500 for a free consultation.